Global Economics Practice Exam
Course Introduction
Global Economics explores the complex interconnections among economies across the world, analyzing how trade, investment, finance, and policy decisions influence national and international markets. The course examines fundamental economic theories and models, the roles of major international organizations, and the impact of globalization on both developed and developing countries. Students learn to assess the effects of exchange rates, trade agreements, and economic crises, and gain insights into current global issues such as economic inequality, environmental sustainability, and the digital economy.
Recommended Textbook
Economics Canada in the Global Environment 9th Edition by Robin Bade
Available Study Resources on Quizplus
31 Chapters
4049 Verified Questions
4049 Flashcards
Source URL: https://quizplus.com/study-set/1466
Page 2
Chapter 1: What Is Economics
Available Study Resources on Quizplus for this Chatper
212 Verified Questions
212 Flashcards
Source URL: https://quizplus.com/quiz/29188
Sample Questions
Q1) What is the slope across the arc between B and C in Figure 1A.3.3?
A)1/2.
B)2/3
C)1
D)2
E)3
Answer: C
Q2) The creation of a successful movie illustrates choices made in self-interest that also achieve the social interest if
A)the movie has a higher attendance than any other movie produced that year.
B)the movie is produced at the lowest possible cost, and the movie gives the greatest possible benefit.
C)the movie addresses a social issue.
D)the movie is an Academy award winner because an Academy award winning movie is most popular with the movie-going public.
E)the movie is produced in a country where workers typically earn less than workers in North America.
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: The Economic Problem
Available Study Resources on Quizplus for this Chatper
159 Verified Questions
159 Flashcards
Source URL: https://quizplus.com/quiz/29199
Sample Questions
Q1) Jane produces only corn and cloth. If her preferences for corn and cloth change, then
A)her PPF becomes steeper.
B)her PPF becomes flatter.
C)her PPF becomes straighter.
D)the world PPF shifts outward.
E)her PPF does not change.
Answer: E
Q2) Refer to Fact 2.4.1. Which one of the following statements is true?
A)Andy has an absolute advantage in butter production.
B)Rolfe has an absolute advantage in butter production.
C)Andy has a comparative advantage in bread production.
D)Andy has a comparative advantage in butter production.
E)Rolfe has a comparative advantage in bread production.
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
4
Chapter 3: Demand and Supply
Available Study Resources on Quizplus for this Chatper
197 Verified Questions
197 Flashcards
Source URL: https://quizplus.com/quiz/29210
Sample Questions
Q1) Refer to Table 3.5.3. In a television interview, Joe Cool shows off his designer sport t-shirt, setting off a new craze that doubles business at the sportswear establishments. The quantity of t-shirts demanded doubles at each price. The new equilibrium price is $________ and the new equilibrium quantity is ________ t-shirts per month.
A)12; 240
B)8; 400
C)16; 400
D)12; 120
E)16; 200
Answer: A
Q2) Which of the following decreases the supply of popcorn?
A)a decrease in the price of popcorn
B)an increase in the price of popcorn
C)a technological advance in the production of popcorn
D)a decrease in the demand for popcorn
E)a decrease in the number of popcorn producers
Answer: E
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Elasticity
Available Study Resources on Quizplus for this Chatper
186 Verified Questions
186 Flashcards
Source URL: https://quizplus.com/quiz/29213
Sample Questions
Q1) A unit elastic demand
A)means that the ratio of a change in quantity demanded to a change in price is equal to 1.
B)means that the ratio of a percentage change in quantity demanded to a percentage change in price is equal to 1.
C)means that the ratio of a change in price to a change in quantity demanded is equal to 1.
D)is illustrated by a horizontal demand curve.
E)is illustrated by a vertical demand curve.
Q2) Which one of the following must be true if demand is income inelastic?
A)A large percentage increase in income will result in a small percentage increase in quantity demanded.
B)A small percentage increase in income will result in a large percentage increase in quantity demanded.
C)An increase in income will decrease the quantity demanded.
D)The good is an inferior good.
E)A percentage rise in price increases the quantity demanded by a smaller percentage.
To view all questions and flashcards with answers, click on the resource link above.
6
Chapter 5: Efficiency and Equity
Available Study Resources on Quizplus for this Chatper
119 Verified Questions
119 Flashcards
Source URL: https://quizplus.com/quiz/29214
Sample Questions
Q1) The marginal cost of producing an additional basket of tomatoes is $5.00. The consumer is willing to pay a maximum of $9.00 for an additional basket. A farmer sells a basket of tomatoes for $6.00 each. The farmer receives a producer surplus from selling an additional basket of tomatoes equal to
A)$1.00.
B)$3.00.
C)$4.00.
D)$5.00.
E)$9.00.
Q2) A monopoly leads to A)overproduction.
B)underproduction.
C)efficient production.
D)maximization of consumer surplus.
E)zero deadweight loss.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Governments Actions in Markets
Available Study Resources on Quizplus for this Chatper
130 Verified Questions
130 Flashcards
Source URL: https://quizplus.com/quiz/29215
Sample Questions
Q1) When a sales tax is imposed on sellers, the supply curve shifts so that the vertical distance between the original supply curve and supply plus tax curve equals the
A)sales tax multiplied by the price elasticity of demand.
B)sales tax multiplied by the price elasticity of supply.
C)sales tax divided by the price elasticity of demand.
D)amount of the sales tax per unit.
E)sales tax divided by the price elasticity of supply.
Q2) Refer to Figure 6.3.2. The seller's share of the tax is A)zero.
B)$0.50.
C)$1.00.
D)$1.50.
E)$2.00.
Q3) If the price of a good is not affected by a tax, then
A)supply is perfectly elastic.
B)demand is perfectly elastic.
C)the elasticity of supply is greater than elasticity of demand.
D)demand is unit elastic.
E)supply is unit elastic.
To view all questions and flashcards with answers, click on the resource link above.
Page 8
Chapter 7: Global Markets in Action
Available Study Resources on Quizplus for this Chatper
138 Verified Questions
138 Flashcards
Source URL: https://quizplus.com/quiz/29216
Sample Questions
Q1) Suppose that the world price of eggs is $1 a dozen, Canada does not trade internationally, and the equilibrium price of eggs in Canada is $3 a dozen. Then Canada begins to trade internationally. Canadian farmers produce ________ eggs. Canada ________ eggs.
A)more; imports
B)more; exports
C)less; exports
D)less; imports
E)the same quantity of; imports
Q2) Import quotas and tariffs both
A)decrease deadweight loss.
B)cause a loss of revenue to domestic producers.
C)lower prices on imported goods.
D)decrease producer surplus.
E)restrict foreign trade.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Utility and Demand
Available Study Resources on Quizplus for this Chatper
120 Verified Questions
120 Flashcards
Source URL: https://quizplus.com/quiz/29217
Sample Questions
Q1) As more of a good is consumed, its
A)marginal utility increases.
B)marginal utility decreases.
C)marginal utility remains unchanged.
D)total utility decreases.
E)total utility increases at an increasing rate.
Q2) The budget line
A)shows the limits to a household's consumption choices.
B)shows the household's total utility.
C)is downward sloping because it illustrates decreasing marginal utility.
D)shows how a household's consumption choices change as income changes.
E)shifts outward as total utility increases.
Q3) The change in total utility that results from a one-unit increase in the quantity of a good consumed is
A)additional utility.
B)marginal utility.
C)average utility.
D)marginal utility per dollar.
E)fractional utility.
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 9: Possibilities, Preferences, and Choices
Available Study Resources on Quizplus for this Chatper
124 Verified Questions
124 Flashcards
Source URL: https://quizplus.com/quiz/29218
Sample Questions
Q1) An indifference curve slopes downward because
A)it shows that people are only happy when they increase consumption of all goods.
B)it shows that when a person gives up some of good X they must increase their consumption of good Y to remain indifferent.
C)it shows that when a person gives up some of good X they can afford to increase their consumption of good Y.
D)it is a demand curve without prices.
E)the quantity demanded increases as the price falls.
Q2) Zarina can afford to buy 3 tomatoes and no toothbrushes, or 2 toothbrushes and no tomatoes. The relative price of a toothbrush is
A)2/3 of a tomato.
B)3/2 tomatoes.
C)6 tomatoes.
D)1/6 of a tomato.
E)impossible to calculate without additional information.
To view all questions and flashcards with answers, click on the resource link above.
11
Chapter 10: Organizing Production
Available Study Resources on Quizplus for this Chatper
111 Verified Questions
111 Flashcards
Source URL: https://quizplus.com/quiz/29189
Sample Questions
Q1) Refer to Table 10.4.1. The four-firm concentration ratio for the pizza sellers is
A)40 percent.
B)100 percent.
C)80 percent.
D)33 percent.
E)12.5 percent.
Q2) A firm with two or more owners who have unlimited liability is
A)a sole proprietorship.
B)a partnership.
C)a conglomerate.
D)a corporation.
E)a public company.
Q3) Consider Fact 10.2.1. Which production method is technologically inefficient?
A)A
B)B
C)C
D)all of the above
E)none of the above
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Output and Costs
Available Study Resources on Quizplus for this Chatper
142 Verified Questions
142 Flashcards
Source URL: https://quizplus.com/quiz/29190
Sample Questions
Q1) The law of diminishing marginal returns states:
A)As the size of a plant increases, marginal product eventually decreases.
B)As the size of a firm's plant increases, average cost eventually decreases.
C)As a firm uses more of a variable factor of production, with a given quantity of the fixed factor of production, the marginal product of the variable factor eventually diminishes.
D)As a firm uses more of a variable factor of production, its average cost eventually decreases.
E)As a firm uses more of a variable factor or production, total product eventually decreases.
Q2) Refer to Table 11.2.1 which gives Tania's total product schedule. The marginal product when the firm increases the number of workers from 3 to 4 per day is
A)6 teapots.
B)2 teapots.
C)9 teapots.
D)7 teapots.
E)4 teapots.
To view all questions and flashcards with answers, click on the resource link above.
13
Chapter 12: Perfect Competition
Available Study Resources on Quizplus for this Chatper
117 Verified Questions
117 Flashcards
Source URL: https://quizplus.com/quiz/29191
Sample Questions
Q1) Refer to Fact 12.2.1. GM will start producing the Chevy Volt again when price is greater than
A)average variable cost.
B)total variable cost.
C)average fixed cost.
D)total fixed cost.
E)total cost.
Q2) If a perfectly competitive firm's marginal revenue is less than its marginal cost, the firm
A)cannot increase its economic profit.
B)must be making an economic profit.
C)will decrease its output to increase economic profit.
D)will increase its output to increase economic profit.
E)must raise the price.
Q3) The slope of a perfectly competitive firm's demand curve is A)infinity.
B)zero.
C)1.
D)greater than 1.
E)negative.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Monopoly
Available Study Resources on Quizplus for this Chatper
118 Verified Questions
118 Flashcards
Source URL: https://quizplus.com/quiz/29192
Sample Questions
Q1) A price cap is a price ________. A price cap might be a more effective way of regulating monopoly than rate of return regulation because under rate of return regulation, ________.
A)ceiling; a firm incurs an economic loss
B)floor; price is set equal to marginal cost
C)ceiling; the firm's managers have an incentive to inflate costs
D)floor; the firm's managers have an incentive to purchase more than the efficient quantity of capital
E)floor; the firm's managers have an incentive to inflate costs
Q2) Methods of rent seeking include which of the following?
I. Buying a monopoly
II. Creating a monopoly
III. Price discrimination
A)I and II
B)I and III
C)II and III
D)III only
E)II only
To view all questions and flashcards with answers, click on the resource link above.
Page 15
Chapter 14: Monopolistic Competition
Available Study Resources on Quizplus for this Chatper
122 Verified Questions
122 Flashcards
Source URL: https://quizplus.com/quiz/29193
Sample Questions
Q1) Consider a monopolistically competitive industry in long-run equilibrium. Suppose there is a large increase in wages that raises the costs for all firms. What happens within each firm in the short run?
A)They will be forced to close down due to the excess costs.
B)They will continue producing as before, cushioned by their previous excess profits.
C)They will expand output and try to make up for lost profits.
D)They will lower prices and try to steal customers away from their rivals.
E)They will decrease production and produce the quantity at which marginal revenue equals the new (higher)marginal cost curve; this means a rise in price.
Q2) In the long run, the firm in monopolistic competition
A)faces a perfectly elastic demand.
B)produces more than the quantity at minimum ATC.
C)produces less than the quantity at minimum ATC.
D)produces the quantity at minimum ATC.
E)makes an economic profit.
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Oligopoly
Available Study Resources on Quizplus for this Chatper
106 Verified Questions
106 Flashcards
Source URL: https://quizplus.com/quiz/29194
Sample Questions
Q1) Which one the following industries is the best example of an oligopoly?
A)the market for wheat
B)the fast-food industry
C)the automobile industry
D)the clothing industry
E)the restaurant industry
Q2) A trigger strategy is one in which a player
A)cooperates in the current period if the other player cooperated in the previous period, but cheats in the current period only if the other player cheated in the previous period.
B)cheats in the current period if the other player cooperated in the previous period, but cooperates in the current period if the other player cheated in the previous period.
C)cooperates in the current period if the other player has always cooperated, but cheats forever if the other player ever cheats.
D)cheats in the current period if the other player has always cheated, but cooperates forever if the other player has ever cooperated.
E)changes his or her strategy in a random manner.
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Externalities
Available Study Resources on Quizplus for this Chatper
116 Verified Questions
116 Flashcards
Source URL: https://quizplus.com/quiz/29195
Sample Questions
Q1) A private cost of production is a cost that is borne by the ________ of a good or service. A social cost of production is a cost that is ________.
A)consumer; borne by the producer and by everyone else on whom the cost falls
B)consumer; not borne by the producer but borne by other people
C)producer; not borne by the producer but borne by other people
D)producer; borne by the producer and by everyone else on whom the cost falls
E)producer; borne by the consumer
Q2) Three ways governments can encourage production of goods with external benefits are
A)private subsidies, pollution permits, and intellectual property rights.
B)private subsidies, pollution permits, and vouchers.
C)intellectual property rights, pollution permits, and vouchers.
D)taxes, emission charges, and pollution permits.
E)private subsidies, vouchers, and intellectual property rights.
Q3) Choose the incorrect statement.
A)A patent encourages invention.
B)A patent encourages innovation.
C)A patent has an economic cost.
D)A patent creates a negative externality.
E)A patent produces a monopoly.
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Public Goods and Common Resources
Available Study Resources on Quizplus for this Chatper
98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/29196
Sample Questions
Q1) One way to alleviate the tragedy of the commons is to
A)eliminate production quotas for using the common resource.
B)make the resource private property.
C)allow all individuals to use the common resource free of charge.
D)distribute common resources among those individuals who really need the resource free of charge.
E)set a price of $1 per unit of the common resource because it is an affordable price.
Q2) Rational ignorance suggests that voters will
A)understand defence technology before voting for defence policy.
B)understand the auditing procedures of the Canada Revenue Agency before voting for tax reform.
C)understand the chemistry of the atmosphere before voting for a clean-air act.
D)vote without complete information on many issues.
E)vote based on their complete trust in politicians and bureaucrats.
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: Markets for Factors of Production
Available Study Resources on Quizplus for this Chatper
128 Verified Questions
128 Flashcards
Source URL: https://quizplus.com/quiz/29197
Sample Questions
Q1) Refer to Figure 18.3.1. This figure shows the value of marginal product of labour curve, the labour supply curve, and the marginal cost of labour curve. If this labour market is controlled by a monopsony, then the monopsonist hires
A)zero hours of labour.
B)50 hours of labour.
C)75 hours of labour.
D)100 hours of labour.
E)greater than 100 hours of labour.
Q2) The substitution effect on labour supply refers to the degree to which A)the firm can substitute other factors of production for labour.
B)buyers can substitute other products for the products that are made by organized labour.
C)labour is willing to substitute nonlabour income for wages.
D)labour prefers to substitute nonmonetary payments for money wages.
E)labour is willing to substitute work for leisure.
To view all questions and flashcards with answers, click on the resource link above.
20
Chapter 19: Economic Inequality
Available Study Resources on Quizplus for this Chatper
124 Verified Questions
124 Flashcards
Source URL: https://quizplus.com/quiz/29198
Sample Questions
Q1) Income maintenance programs include all of the following programs except A)social security programs.
B)workers' compensation.
C)Canada Pension Plan.
D)employment insurance.
E)the minimum wage.
Q2) An income Lorenz curve
A)graphs the cumulative percentage of income against the cumulative percentage of households.
B)measures the income among households ranked from the poorest to the richest.
C)measures the income among households ranked from the richest to the poorest.
D)measures the factor prices earned by the rich compared with the poor.
E)is a downward-sloping curve.
Q3) Customer discrimination against female realtors ________ the number of female realtors and ________ their perceived value of marginal product.
A)decreases; decreases
B)decreases; increases
C)increases; increases
D)increases; decreases
E)decreases; does not change
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 20: Measuring Gdp and Economic Growth
Available Study Resources on Quizplus for this Chatper
133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/29200
Sample Questions
Q1) Consumption expenditure includes only
A)expenditure by Canadian households on goods and services produced in Canada.
B)expenditure by Canadian households and firms on goods and services produced in Canada.
C)expenditure by Canadian households, firms, and governments on goods and services produced in Canada.
D)expenditure by Canadian households on goods and services produced in Canada and in the rest of the world.
E)expenditure by Canadian households and foreigners on goods and services produced in Canada.
Q2) Refer to Fact 20.1.1. Peter's capital at the end of 2014 is
A)$7,000.
B)$9,600.
C)$4,400.
D)$7,600.
E)$4,000.
To view all questions and flashcards with answers, click on the resource link above.
22
Chapter 21: Monitoring Jobs and Inflation
Available Study Resources on Quizplus for this Chatper
121 Verified Questions
121 Flashcards
Source URL: https://quizplus.com/quiz/29201
Sample Questions
Q1) Frictional unemployment
A)includes discouraged searchers.
B)is voluntary part-time unemployment.
C)includes workers who have lost their jobs due to an economic downturn.
D)is unemployment associated with normal labour turnover.
E)occurs when changes in technology change the skills needed to perform jobs.
Q2) Hyperinflation is defined as
A)declining inflation rates.
B)rising but low inflation rates.
C)very high inflation rates.
D)very low inflation rates.
E)an increase in the price level.
Q3) The working-age population is the total number of people
A)in the labour force.
B)in the labour force who are employed.
C)aged 15 years and over.
D)in the labour force, aged 15 years and over.
E)in the labour force, aged 15 years and over, and employed.
To view all questions and flashcards with answers, click on the resource link above.
23
Chapter 22: Economic Growth
Available Study Resources on Quizplus for this Chatper
98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/29202
Sample Questions
Q1) If new capital increases labour productivity, the supply of labour ________ and the demand for labour ________.
A)stays the same; increases
B)increases; increases
C)increases; decreases
D)decreases; stays the same
E)increases; stays the same
Q2) Which of the following is not a source of economic growth?
A)increasing stock market prices
B)better educated workers
C)growing physical capital
D)appropriate incentive system
E)advances in technology
Q3) An increase in population results in
A)an upward shift in the production function.
B)a movement along the production function.
C)a leftward shift of the labour supply curve.
D)a rightward shift of the labour demand curve.
E)a rise in the real wage rate.
To view all questions and flashcards with answers, click on the resource link above.
Page 24
Chapter 23: Finance, Saving, and Investment
Available Study Resources on Quizplus for this Chatper
141 Verified Questions
141 Flashcards
Source URL: https://quizplus.com/quiz/29203
Sample Questions
Q1) When a government has a budget surplus, the surplus
A)helps finance investment.
B)crowds-out private saving.
C)must be subtracted from private saving.
D)increases the world real interest rate.
E)decreases the demand for loanable funds.
Q2) An increase in ________ will shift the supply of loanable funds curve ________.
A)expected future income; rightward
B)wealth; leftward
C)disposable income; leftward
D)default risk; rightward
E)the real interest rate; rightward
Q3) At the beginning of the year, your wealth is $10,000. During the year, you have an income of $80,000 and you spend $90,000 on consumption goods and services. You pay no taxes. Your wealth at the end of the year is
A)$20,000.
B)$0.
C)$90,000.
D)$100,000.
E)$10,000.
To view all questions and flashcards with answers, click on the resource link above. Page 25
Chapter 24: Money, the Price Level, and Inflation
Available Study Resources on Quizplus for this Chatper
126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/29204
Sample Questions
Q1) Quantecon is a country in which the quantity theory of money operates. The country has a constant population, capital stock, and technology. In year 1, real GDP was $400 million, the price level was 200, and the velocity of circulation was 20. In year 2 the quantity of money was 20 percent higher than in year 1.
The quantity of money in year 1 was ________.
The quantity of money in year 2 was ________.
The price level in year 2 is ________.
A)$20 million; 24 million; 240
B)$20 million; $24 million; 220
C)$40 million; $48 million; 240
D)$40 million; $48 million; 220
E)$80 million; $88 million; 200
Q2) If people decide to transfer their currency into their bank deposits then, all else constant, their decisions will
A)cause the quantity of money to decrease.
B)cause lower inflation.
C)cause higher real interest rates.
D)cause the quantity of money to increase immediately.
E)increase the actual reserves of banks.
To view all questions and flashcards with answers, click on the resource link above.
Page 26
Chapter 25: The Exchange Rate and the Balance of Payments
Available Study Resources on Quizplus for this Chatper
126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/29205
Sample Questions
Q1) Suppose that a country's government expenditures are $500 billion, net taxes are $400 billion, saving is $200 billion, and investment is $250 billion. The country has a government budget
A)surplus and a private sector surplus.
B)surplus and a private sector deficit.
C)deficit and a private sector surplus.
D)deficit and a private sector deficit.
E)surplus and a private sector balance.
Q2) The supply curve of dollars shifts rightward if
A)the Canadian exchange rate rises.
B)the price of Canadian goods and services decreases.
C)Canadian interest rates rise.
D)foreign interest rates rise.
E)none of the above
Q3) Which one of the following shifts the demand curve for dollars rightward?
A)An increase in the demand for foreign goods by Canadians
B)A decrease in the demand for Canadian goods by foreigners
C)The dollar is expected to appreciate.
D)The dollar is expected to depreciate.
E)U.S. interest rates rise.
Page 27
To view all questions and flashcards with answers, click on the resource link above.
Chapter 26: Aggregate Supply and Aggregate Demand
Available Study Resources on Quizplus for this Chatper
136 Verified Questions
136 Flashcards
Source URL: https://quizplus.com/quiz/29206
Sample Questions
Q1) Refer to Figure 26.3.1. If Econoworld automatically adjusts to a long-run equilibrium, then in the long-run macroeconomic equilibrium,
A)the price level is 70.
B)real GDP is $440 billion.
C)actual unemployment exceeds the natural unemployment rate.
D)potential GDP is greater than in the short run.
E)Both A and B
Q2) Canadian firms build new pipelines across the nation. What is the effect on the quantity of real GDP demanded or aggregate demand in Canada?
A)The quantity of Canadian real GDP demanded increases.
B)The quantity of Canadian real GDP demanded decreases.
C)Canadian aggregate demand increases.
D)Canadian aggregate demand decreases.
E)There is no change to either the quantity of real GDP demanded or to aggregate demand.
To view all questions and flashcards with answers, click on the resource link above.
28
Chapter 27: Expenditure Multipliers
Available Study Resources on Quizplus for this Chatper
171 Verified Questions
171 Flashcards
Source URL: https://quizplus.com/quiz/29207
Sample Questions
Q1) In a recent study, the University of Underfunded argued that it created four times as many jobs as people that it hired directly. This argument illustrates the idea
A)of the marginal propensity to consume.
B)of the multiplier.
C)of government spending.
D)of the tax multiplier.
E)that universities are wasting taxpayers' dollars.
Q2) The marginal propensity to consume is the
A)fraction of the first dollar of disposable income received that is saved.
B)fraction of the first dollar of disposable income received that is consumed.
C)fraction of the last dollar of disposable income received that is saved.
D)fraction of a change in disposable income that is spent on consumption.
E)total amount of consumption divided by the total amount of disposable income.
Q3) Refer to Table 27.1.2. What is the value of the marginal propensity to consume?
To view all questions and flashcards with answers, click on the resource link above.
Page 29
Chapter 28: The Business Cycle, Inflation, and Deflation
Available Study Resources on Quizplus for this Chatper
110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/29208
Sample Questions
Q1) According to mainstream business cycle theory, ________ grows at a steady rate and ________ grows at a fluctuating rate.
A)aggregate demand; long-run aggregate supply
B)potential GDP; aggregate demand
C)potential GDP; short-run aggregate supply
D)short-run aggregate supply; long-run aggregate supply
E)short-run aggregate supply; aggregate demand
Q2) Deflation occurs when
A)aggregate demand increases at a persistently slower rate than aggregate supply.
B)aggregate demand increases at a persistently faster rate than aggregate supply.
C)the growth rate of potential GDP slows.
D)the quantity of money remains constant.
E)the quantity theory of money is disregarded.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 29: Fiscal Policy
Available Study Resources on Quizplus for this Chatper
97 Verified Questions
97 Flashcards
Source URL: https://quizplus.com/quiz/29209
Sample Questions
Q1) Consider all the effects of fiscal policy. A cut in the income tax
A)shifts the AD curve rightward but does not shift either the LAS or SAS curve.
B)shifts the AD, SAS, and LAS curves rightward.
C)shifts the SAS curve rightward but does not shift either the AD or LAS curve.
D)shifts both the SAS and LAS curves rightward but does not shift the AD curve.
E)shifts the LAS curve rightward but does not shift either the AD or SAS curve.
Q2) The government increases the tax rate on labour income. At the equilibrium level of employment, the before-tax wage rate ________ and the after-tax wage rate
A)rises; falls
B)falls; rises
C)rises; rises
D)falls; falls
E)rises; does not change
Q3) A structural deficit
A)is present only if real GDP is greater than potential.
B)exists even if real GDP equals potential.
C)equals the cyclical deficit plus the actual deficit.
D)is greater than a cyclical deficit.
E)occurs when the economy is in a recession.
To view all questions and flashcards with answers, click on the resource link above. Page 31
Chapter 30: Monetary Policy
Available Study Resources on Quizplus for this Chatper
97 Verified Questions
97 Flashcards
Source URL: https://quizplus.com/quiz/29211
Sample Questions
Q1) Refer to Fact 30.1.1. In the inflation control agreement, the Government of Canada and the Bank of Canada agree to all of the following except that
A)the target will continue to be defined in terms of the 12-month rate of change in the total CPI.
B)the inflation target will continue to be 2 percent.
C)the agreement will run until December 31, 2016.
D)if the CPI becomes too volatile, in the future the target will be defined in terms of the 12-month rate of change in the core CPI.
E)the inflation-control range is 1 percent to 3 percent a year.
Q2) When the Bank of Canada fights recession by lowering the overnight loan rate, the supply of loanable funds curve shifts ________, and the aggregate demand curve shifts ________.
A)leftward; leftward
B)leftward; rightward
C)rightward; leftward
D)rightward; rightward
E)rightward and the demand for loanable funds curve shifts rightward; rightward
To view all questions and flashcards with answers, click on the resource link above.
Page 32
Chapter 31: Macro Only: International Trade Policy
Available Study Resources on Quizplus for this Chatper
126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/29212
Sample Questions
Q1) Who benefits from imports?
A)domestic consumers
B)domestic producers
C)foreign consumers
D)domestic workers in the industry
E)Everyone benefits.
Q2) Compared to the situation before international trade, after Canada exports a good, production in Canada ________ and consumption in Canada ________.
A)increases; increases B)increases; decreases C)decreases; increases D)decreases; decreases E)increases; does not change
Q3) Consider a market that sells some of its goods as exports. Who does NOT benefit?
A)domestic consumers
B)domestic producers
C)workers in the industry
D)foreign consumers
E)All of the above benefit.
To view all questions and flashcards with answers, click on the resource link above.
Page 33